An “Ideal” Arrangement for Radiologists: Proving Innovation and Low Cost Can Come As a Pair
As hospitals across the U.S. experience increasing pressure to deliver higher-value healthcare at a lower cost, they continue to face challenges related to outcomes, cost control, market competition, and other dynamics. Initiatives to promote value typically involve reimbursement arrangements between health insurers and providers that align financial efficiency and quality incentives.
Last week, Temple University Health System (TUHS) and GE Healthcare announced that they will collaborate in a different way to provide higher-quality radiologic imaging services more efficiently at a lower cost.
TUHS and GE Healthcare signed a first-of-its-kind agreement between a healthcare technology company and an academic medical center that includes financial incentives aligning the parties toward realizing shared objectives, including a targeted $39 million in operational savings over the life of the contract.
The ultimate goal is to drive the “Triple Aim” – better care and better health at a lower cost.
“People want to say, ‘what do you want – do you want innovation or low cost?’” Jeff Immelt, Chairman and CEO of GE Healthcare said. “We’re trying to prove that you can have both.”
Under the seven-year agreement, TUHS and GE Healthcare will work together to achieve clinical, operational and financial performance goals enabled by new technology and industry best practices.
“GE is an ideal partner for us because of their world-wide expertise in Lean 6-Sigma over several decades …plus their outstanding clinical and administrative leadership – all of which will further elevate our ability to enhance productivity and efficiency in meeting our patients’ needs,” Dr. Cliff Belden, Chair of Radiology of TUH, said. “Temple clinicians and technologists will collaborate closely with GE’s professional consultants to bring the benefits of industry best-practices to our patients, using the very latest imaging technologies.”
Bob Lux, CFO of TUHS, explains that this collaboration structure could have significant impact beyond TUHS.
“The relationship we put together has the potential, if we both develop it well, to create a lot of innovation, a lot of value, and help to light a road into the future that not only Temple, but most hospitals in this country will have to follow.” Lux said.
Watch what Dr. Cliff Belden, Chair of Radiology at TUH, and Larry Kaiser, President and CEO, TUHS, Dean, TUSM of TUHS, have to say about the agreement:
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